nmc water reforms
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8/3/2019 NMC Water Reforms
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NEED FOR REFORMS IN WATER SECTOR
Municipal Corporation Makes Payment to Irrigation Department for : 600 ml/ Day (annual avg.)
Municipal Corporation Supplies Treated Water to City : 490 ml/ Day
Municipal Corporation Billing to all consumers against water supply: 240 ml/ Day (annual avg.)
Total Water Losses / UFW/ NRW are 360 ml/ Day i.e. 60 % of supply.
Annual expenditure of Municipal Corporation on water supply : Rs 95 crores
Total demand from consumers against water bills: Rs 71.5 crores (deficit of Rs 23.5 crores)
Total recovery against water bill : Rs 50 crores (arrears of Rs 21.50 crores)
STATEMENT OF WATER BILLING DEMAND TO CONSUMER AND ITS RECOVERY YEAR DEMAND RECEIPT % RECOVERY
(IN Rs. CRORES) (IN Rs. CRORES)2001-2002 70 44 63
2002-2003 73.50 45 632003-2004 71.50 50 69*RECOVERY INCLUDES ARREAR
WATER SUPPLY370 MLD
370 MLD490 MLD
COST OF TREATED WATER IS Rs 5.30/ 1000 ltrs.
ANNUAL ENERGY BILL OF Rs. 22 CRORE /YEAR
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Water sector Challenges: NMC
Availability of adequate quantum of water and at economicalcost to meet future demand.
Reduce the cost water supply to consumer
Water Losses and UFW Equitable distribution (Alternate day / 20 hrs/day) Accountability Water to Slums (inefficient system)
Water network coverage and inadequacy of network Water supply management during summer peak demand Old and inefficient assets Delay in capacity augmentation for future demand from Limited
water sources.
Capital availability Low water tariff and Poor billing mechanism. Lack of professional approach.
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BWSSB-NOV '96
Inadequate
maintenance of
existing assets
Lack of operationalexpertise
High UFW
Strain on WaterResources
Tariffs not rational
Unsatisfied demand
Poor cost recovery
AUGMENTATION
Strain on waterresources
Additional capital
expenditure
FUNDINGCONSTRAINTS
THROUGH
COMMERCIAL
SOURCES
FUNDING BURDEN ON
NMC
MISMATCH BETWEEN
INCREASING NEEDS &
DECREASING RESOURCES
Vicious circle and strategy
STRATEGY
Water sector reforms including
implementation of Water EfficiencyProjects under JNNURM grants
with professional approach of pvt.
Sector to improve the accountability ,
service standards with special
emphasis on urban poor.
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NMC Strategy for Reforms in
Water Sector Fixing of Benchmarking and Performance indicators through Water audit,
Energy audit & Financial reforms.
UFW/NRW reduction program with investment plan Assets Up gradation plan for better serviceability and efficiency
Cost reduction program (Energy, Water & O & M Cost)
Improvement in services to consumer special emphasis to urban poor
Implementation of augmentation plans with inbuilt efficiencies. Low cost Funds / Grant from Jn-NURM/ Tax free bonds/ PPP
Performance based contract with 10 to 15 years of O & M for privateparticipation
Quality & Cost based selection criteria for contractors, consultants and
Operators. Rationalization of Water Tariff and Billing with Meterisation.
Capacity building of NMC employees by exposure and training.
Review of water supply master plan with inclusion of water reuseoption
..Moving towards Continuous Water Supply in Nagpur
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6. Pench-4 : Aug. water to supply project throgh reducedwater losses in canal. : Rs 422 crore has been
sanctioned under JNNURM7. New Water Supply Policy for Slums. To reduce UFWand service to urban poor.
8. Rationalisation of Water Tariff. (To recover O & M Cost
+ Telescopic tariff for water conservation)9. Up gradation of Kanhan water supply systems (Project
cost Rs. 83 crore sanctioned under JNNURM )(Optimum Utilisation of water resources)
10.Water Reuse Projects under WENEXA-II: To make theregion water surplus :Project cost Rs.131 croresanctioned under JNNURM
STEPS TAKEN BY NMCSTEPS TAKEN BY NMC
FOR BETTER EFFICIENYIN WATER SUPPLYFOR BETTER EFFICIENYIN WATER SUPPLY
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TariffTariff revisionrevision forfor costcost recoveryrecovery
andand waterwater conservationconservation
Tariff Revision as approved by General Body
Telescopic tariff Minimum domestic tariff increase from Rs 3 per 1000 ltrs to Rs 7.50per 1000 ltrs.
Subsidized tariff for life line consumption up to 8000 ltrs per familyper month
Supply at cost for consumption beyond life line supply and up to20000 ltrs per month per family
Premium tariff on excessive consumption (>20000 ltrs)
Linking of tariff with variation in cost of energy and raw water
Energy and Raw water cost make 50% of total O & M cost
Variation in raw water or energy cost shall be adjusted as surchargefrom consumers.
Meter replacement program for all consumer a important part of24x7 project.
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425Immediate Funds requirement
40.00Energy & Raw water cost
Rs (in Crore)Description
70.00Annual Burden (10 years
repayment @ 10% IR)
30.00Project Savings/Revenue (withtariff revision and existingcollection efficiency)
40.00Balance Annual Burden
500Future Source development
Rahari (10 years)
240.0024 x 7 System ImprovementRs12000/ connection
185.00NMC share 30%
615.00Investment for Augmentation& Improvements
Under JNNURM
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Present NMC approach for Private
Participation
Performance based long term contract
Private Participation in capital cost from Operator Technology by operator for lower life cycle cost New assets to generate income rather than increase
financial burden on NMC or at least reduce financialburden on NMC
Better service to consumer and urban poor Asset ownership with NMC JNNURM funding for better viability of project and
reduced cost of capital. No NMC employee for operating the New assets for
Augmentation to water supply projects
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Public Private Partnership in WaterSector
Project Finalized Under JnNurm Pench-I WTP Improvement & Up gradation (Rs 6.42 Crore)
70% grant in aid, 30% by private operator (Veolia Water) 5 Years O & M by operator
Water reuse For Power Plant (Rs 130 Crore) 70% grant in aid, 30% by Mahagenco 30% O & M by Mahagenco & pay to NMC the raw sewage charges @ Rs1.07 1.50
per 1000 Ltr for 110 MLD. Annual revenue to NMC Rs 4.50 6.00 crore from sewage
24/7 Water Supply (Rs 20 Crore) 5 years O & M with performance based targets to reduce UFW and improvement in
service level to customers in a pilot zone of 1.25 lakhs population.
Projects Under Tendering for 30% share from private sector Improvement to Kanhan Water Supply (Rs 83 Crore) Pench-IV Part I raw water pipe line project (Rs. 200 Crore) Pench IV Part-2 WTP project (Rs 25 Crore)
Upcoming Projects for Private Participation Water production and distribution management of Nagpur City as a whole.
2.5 million population, 585 mld of water supply, 2.0 lakhs connection
Water reuse for 200 mld of raw sewage for power, industrial and other nonpotable uses.
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PPP in UN-INTERRUPTED WATERSUPPLY : OBJECTIVES
UN-INTERRUPTED WATER SUPPLY at desiredpressure.
100 % Meterisation including NMC properties.
Optimise the UFW (Real + Apparent Losses) < 15%
Efficient billing mechanism. Sufficient supply to meet the water demand of Urban
poor (Slums).
Reduction in consumer complaint and attending it within48 hrs.
Improved Satisfaction for stakeholders.
Implementation of successful experience in other parts
of the city.
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Performance Contract for Operator
Ufw : Cut off Ratio 60-70% forBonus/Penalty
Billing : Bonus for additional billing over baseline
Pressure : Penalty for not maintaining theprescribed Pressure at minimum 10 observationpoints for cont. 24 hrs
Quality: Penalty on Failure to meet the desiredchlorine level.
Customer Complaint : Penalty on unsolvedcomplaints within 3 working days.
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North Zone STP : PPP Model Existing Central Zone STP
100 mld operates at 70 mld
NMC repay the loan on capital cost taken for construction.
NMC to spend 4 5 crore/ annum for O & M
Proposed PPP Model for North Zone STP
70% grant from JNNURM Balance investment from Mahagenco (Power generationcompany)
Plant will be operate by Mahagenco for 30 years.
Mahagenco will pay 4-6 Crore /year for 30 year to NMC for raw
sewage of 110 mld Mahagenco will use treated sewage for power plant (2x800 MW)
Agreement between NMC and Mahagenco is finalised.
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Projects in Pipe Line for PPP Pench IV for built and long term O & M
contract Kanhan with DBO,10 years performance
based operating contract for 120 mld WTP
Consumer meterisation & Billing Water distribution concession agreement
for O & M, Service to consumer, billing,recovery and investment from operator.The agreement proposed for 15-20 years.
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THANK YOU
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